GeoPark announces first quarter 2023 operational update

Publisher’s Note: GeoPark will be a presenting at EnerCom Dallas on Tuesday April 18, 2023 at 1:10 pm CST at Hotel Crescent Court. Register to attend.

Bogota, Colombia – April 11, 2023 – GeoPark Limited (“GeoPark” or the “Company”) (NYSE: GPRK), a leading independent Latin American oil and gas explorer, operator and consolidator, today announces its operational update for the three-month period ended March 31, 2023 (“1Q2023”).

All figures are expressed in US Dollars and growth comparisons refer to the same period of the prior year, except when specified.

Oil and Gas Production

Consolidated average oil and gas production down 4% to 36,578 boepd¹, below its production potential of approximately 39,500-40,500 boepd, as previously announced on March 8, 2023, mainly due to temporarily shut-in production and localized blockades in the CPO-5 block (GeoPark non-operated, 30% WI) in Colombia
Currently producing approximately 38,000 boepd

Llanos Basin
Llanos 34 block (GeoPark operated, 45% WI):

Average gross production of 54,799 bopd
Four drilling and four workover rigs currently in operation
GeoPark drilled its first horizontal development well in the block in the Tigana field
– Production tests initiated in late March 2023
– The well was drilled within time and budget to a total depth of 13,862 feet and a horizontal lateral length of 1,270 feet
– The well is currently producing over 3,000 bopd with 0.01% water cut from the Mirador formation
– Based on these results, GeoPark is evaluating drilling additional horizontal wells in 2023

CPO-5 block:

Average gross production of 16,707 bopd, below its production potential of approximately 25,000-26,000 bopd gross, due to shut-in production of the Indico 6 and Indico 7 wells and to a lesser extent, localized blockades, as previously announced on March 8, 2023
The operator expects to resume production in the Indico 6 and Indico 7 wells in May 2023
– These two wells were drilled in late 2022 and together tested over 11,000 bopd gross (or 3,300 bopd net to GeoPark)
– The two wells remained shut in for most of 1Q2023² after the regulator (ANH) requested the operator suspend production until definitive surface facilities are completed
Overall production and operations in the block affected for 9 days in 1Q2023 due to localized blockades
Yarico 1 exploration well, targeting an exploration prospect adjacent to the Mariposa field, reached total depth in March 2023
– According to petrophysical logging interpretation, the well encountered reservoir in the Guadalupe formation, with no evidence of hydrocarbons and depending on injectivity evaluations, may be converted to a disposal well in the future
Drilling activities are expected to continue with the Halcon 1 well, targeting an exploration prospect in the northern part of the block, adjacent to the Llanos 34 block, expected to be spudded in 3Q2023

Llanos 87 block (GeoPark operated, 50% WI):

Tororoi 1 exploration well reached total depth in December 2022
– Production tests in the Mirador formation started in March 2023 and the well is currently producing 240 bopd of light oil with a 1% water cut
Zorzal 1 exploration well reached total depth in February 2023
– Preliminary logging information indicates hydrocarbons in the Barco formation
– Initial production tests flowed light oil from the Barco formation
– Results so far are inconclusive, additional production tests are expected to continue in the next few weeks
Picabuey 1 and Koala 1 exploration wells reached total depth in 1Q2023
– The wells encountered reservoirs in the Barco and Ubaque formations with no evidence of hydrocarbons and the wells were abandoned

Llanos 123 and Llanos 124 blocks (GeoPark operated, 50% WI):

Civil works and other activities currently underway in order to spud 2-3 exploration wells in 2Q2023

Putumayo Basin

Platanillo block (GeoPark operated, 100% WI):

Platanillo Norte 1 development well reached total depth in February 2023
– Preliminary logging information indicated hydrocarbons in the U and N formations
– Production tests in the U formation started in February 2023, currently producing 400 bopd
Average gross production of 2,277 bopd

Put-8 block (GeoPark operated, 50% WI):

Currently working on environmental licensing for the Bienparado exploration prospect

Enhanced ESG Performance and Recognition

2022 emissions intensity decreased by 34% to 12.1 kg CO2e/boe³ (or a 40% decrease to 9.7 kg CO2e/boe in core Llanos 34 block) due to the interconnection of the Llanos 34 block to Colombia’s national power grid and the start of operations of the solar plant
Launched a biodiversity data management training program for local companies in Colombia to provide valuable inputs for flora and fauna restoration and preservation
Multi-year improvement on key safety indicators: Lost Time Injury Rate, Total Recordable Injury Rate, and Motor Vehicle Crash Rate decreased by an average of 50% in the past four years

Delivering on Shareholder Returns and Strengthening the Balance Sheet

Quarterly dividend of $0.13 per share, or $7.5 million, paid on March 31, 2023 (or an annualized dividend of approximately $30 million, a 4.4% dividend yield⁴)
Acquired 0.6 million shares (over 1% of shares outstanding) for $7.5 million in 1Q2023
Cash-in-hand of $145 million⁵ as of March 31, 2023 ($129 million as of December 31, 2022)

2023 Work Program: Growing Production, Drilling More Wells and Giving Back to Shareholders

2023 production guidance of 39,500-41,500 boepd (assuming no production from the exploration drilling program)
Self-funded 2023 capital expenditures program of $200-220 million to drill 50-55 gross wells (including 10-15 low-risk high-potential exploration and appraisal wells)
At $80-90 per bbl Brent, GeoPark expects to generate an Adjusted EBITDA of $510-580 million and a free cash flow of $120-140 million⁶
Targeting to return approximately 40-50% of free cash flow after taxes to shareholders

Upcoming Catalysts

Drilling 10-12 gross wells in 2Q2023, targeting development and exploration projects in the Llanos basin in Colombia
Exploration drilling includes 2-3 new gross wells in the Llanos basin (Llanos 123 and Llanos 124 blocks)

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